Japan to propose new framework to discuss trade issues with US

TOKYO: Japan will propose setting up a new framework to discuss trade issues with the United States in a summit next week, in hopes of persuading it to rejoin the Trans Pacific Partnership (TPP), the Nikkei newspaper said on Saturday.

But the move could backfire, as US President Donald Trump could demand renegotiating terms for the pact or talks for a bilateral free trade agreement (FTA)—both outcomes Japan wants to avoid.

Trump unexpectedly indicated on Thursday the United States might rejoin the landmark TPP, but only if it offered “substantially better” terms than those provided after previous negotiations. Prime Minister Shinzo Abe will make the proposal when he meets Trump at Mar-a-Lago, the president’s Florida resort, on Tuesday and Wednesday, the paper said. Economy Minister Toshimitsu Motegi is likely to lead the Japanese delegation, with his counterpart likely to be US Trade Representative Robert Lighthizer, the paper said, without citing sources. The framework will be separate from a bilateral economic dialogue, set up by Abe and Trump in 2017 and led by their deputies, that discusses issues including trade, infrastructure and technical aid.

The dialogue had so far yielded little, with some analysts saying Japan has used it to broaden the agenda and diffuse direct US pressure for a two-way FTA.